The Swiss National Bank (SNB) is again the focus of much debate, accused as it is of currency manipulation. This column outlines the effects of the SNB’s minimum exchange rate. On balance, the authors argue that the move is a boon, effectively enacting a much-needed relaxation of monetary policy within the Eurozone.

The global crisis has intensified calls for Western governments to pressure China to liberalise its economy – particular its exchange-rate policy. This column argues that the power of China’s policymakers should not be overestimated – just like elsewhere, they must bow to public sentiment. An outside call for the country to change its policies might actually make the change more difficult.

Many economists cite the undervalued renminbi as a major cause of global imbalances and a contributing factor to the global crisis. This column says the undervaluation results mainly from the Balassa-Samuelson effect and that a rebalancing of the world economy will need reforms in China’s social, pension and family policies rather than currency appreciation.

China’s exchange rate policy has implications for global trade and particularly other East Asian nations. This column argues that, given China’s fixation on the dollar peg, countries such as Thailand and Malaysia may have no choice but to peg their currencies to China’s yuan.